Resolution to reallocate funds to Duluth Housing and Redevelopment Authority fails

A resolution to transfer $3,900,000 of American Rescue Plan funds to the Duluth Housing & Redevelopment Authority for affordable housing failed at the Duluth City Council meeting Monday, April 22. The vote was split evenly 4 to 4, causing the resolution to fail.

Prior to the failing vote, it was proposed to table the discussion until all councilors were present, but that tabling also failed in a split vote.

Councilor at Large Arik Forsman came out against the resolution, stating that more than $20 million had already been put towards affordable housing projects in Duluth since 2021, something he said the council should be proud of, and that he believed economic development investment should also be taken into consideration with the funds.

“Of course affordable housing within existing gaps should be in the mix for these unspent funds. That goes without saying, but, we should be open to using DEDA’s flexibility to consider how to make the maximum impact in our community with one time funds,” said Forsman to his fellow councilors. “That includes being more open to economic development.”

The council has until the end of the year to decide how to utilize the unspent American Rescue Plan funds.